Posted by: crudbasher | March 24, 2011

Netflix Original Content Is Much More Than A Strategy Shift — It Could Shift An Industry

There can be only one

An update on the whole Netflix vs Content companies war via TechCrunch.  Yes it’s a war in the fact that there can be only one. (ok so it’s Highlander?)

Netflix has bought the first run rights to a major new series right out from under the noses of the major content companies like HBO and NBC. Apparently they paid about 100 million for the rights.

This is huge. So far Netflix has been a hostage to the content providers such as Showtime and HBO. Most of Netflix’s current content deals will be expiring pretty soon (including Stars) so their content pool is fluctuating. Just a few days ago Showtime announced they were pulling some of their content (and gaining some other).

Why does this matter for education? Walling off and fragmenting content means it will be much harder to access it and bring it into the classroom.

The war isn’t over, but Netflix just opened a new front. It kind of reminds me of Inchon in the Korean War.

  • Potentially huge impact on Netflix and cable companies

    tags: technology netflix cable

    • Netflix has confirmed that they intend to pay for House of Cards a new show being produced by David Fincher (yes, he of Fight Club, The Social Network, etc) and starring Kevin Spacey (yes, he of The Usual Suspects, American Beauty, etc). Netflix is not paying for the full production of it, but instead they’re paying for the first-rights access to air it. In other words, they get the first “window” to show it to viewers.
    • Up until now, Netflix has not had content in this first window.
    • But with House of Cards, the game changes. For the first time, they’re going to get people signing up to Netflix to get first access to content. And if it’s as good as the talent behind it suggests, they might get a lot of people signing up for that very reason.
    • If Netflix’s new gamble here works, this is the absolutely the future. In three years, we won’t be paying $75 a month to a giant cable conglomerate. We’ll be paying $8 to Netflix and other players that pop up — like HBO (by themselves), perhaps. Sure, there will still be the monthly fee for Internet. But most of us are already paying that. We’d just be removing the ridiculous $75 cable television fee that gives us thousands of channels with content only on at a certain time — and most of which we don’t want.

Posted from Diigo. The rest of my favorite links are here.

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